Mobile Data vs. Fixed Data: How Much More Will We Pay?

Mobile Experts calculates the Mobility Premium, and how it can affect M&A between Cable and Mobile

August 10, 2017 --

CAMPBELL, Calif., Aug. 10, 2017 /PRNewswire/ -- It's clear that we pay much more today for LTE data, compared with fixed broadband. Five years from now, the gap will be narrower. Mobile Experts has just published an "Expert INSIGHT" report that calculates the "Mobility Premium" and forecasts its value in 2022.

According to the INSIGHT, service providers are looking beyond simple connectivity to media and other value-added services. Comcast's NBC Universal acquisition back in 2011 has set a precedent, Mobile Experts reports, and AT&T is in the process of acquiring Time Warner. Disney will now launch its own streaming service. These tectonic industry changes are fundamentally driven by changing consumer behavior.

"Changing consumer behaviors are reshaping the telecommunications industry and business models. The traditional 'siloed' voice, data, and video services are converging as consumers increasingly use smartphones to communicate and consume media at home and on-the-go. The consolidation and rumored mergers and acquisitions among major telecom and media companies are reflections of this changing landscape," commented Principal Analyst Kyung Mun.

In the Expert INSIGHT available to all RAN and In-Building wireless subscribers, Mobile Experts explains the mobility premium index, a differential between fixed and mobile broadband pricing on a per-gigabyte basis. While respective $ per GB trends offer views into competitive dynamics within mobile and fixed broadband markets, the mobility premium index provides a metric to gauge the value that end users place on mobility. Mobile Experts has also made some conclusions about the intensity of competition between fixed and mobile operators.

"Based on 5G technology trends and economics," said Principal Analyst Kyung Mun, "We forecast the mobility premium five years from now when 5G services are expected to be fully in service in the top markets, and relate its significance to the fixed/mobile competition as mobile operators explore fixed wireless capabilities and cable operators explore MVNO and facilities-based mobile services."